Back

Hong Kong Enacts Stablecoin Licensing Under New Regulatory Framework

Deputy Secretary for Justice Cheung Kwok-kwan highlights that the Stablecoin Ordinance promotes both the regulated growth of digital assets and the assurance of free capital flow.

Summary

Hong Kong's Deputy Secretary for Justice, Dr. Cheung Kwok-kwan, emphasized the significance of the Stablecoin Ordinance, enacted in August, which establishes a licensing regime for stablecoin issuers. This law aims to strengthen the regulation of virtual assets, manage risks, and foster financial innovation while ensuring the free flow of capital under the Basic Law.

Terms & Concepts
  • Stablecoin Ordinance: A Hong Kong law passed in August establishing a licensing system for stablecoin issuance as part of its crypto regulatory framework.
  • Stablecoin: A cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as fiat currency.
  • Basic Law: Hong Kong's constitutional document which ensures rights including free flow of capital and sets governance principles.